In a speech at George Mason University in Fairfax, Va., Obama pledged to put Americans back to work rebuilding roads, bridges and schools to "retrofit America for a global economy."

Obama said there are a host of worthy projects out there, including updating the U.S. electricity grid to save money and protect from blackouts or attack, and expansion of broadband access so small businesses in rural areas can compete on an international basis. He also called for investment in science, research and technology.

"To build an economy that can lead this future, we will begin to rebuild America," Obama said.

Obama pledged to provide immediate relief to states, workers and families "bearing the brunt of this recession."

"To get people spending again, 95 percent of working families will receive a $1,000 tax cut, the first stage of a middle-class tax cut that I promised during the campaign and will include in our next budget," Obama said. "To help Americans who have lost their jobs and can't find new ones, we'll continue the bipartisan extension of unemployment insurance and healthcare coverage to help them through this crisis. Government at every level will have to tighten its belt, but we'll help struggling states avoid harmful budget cuts, as long as they take responsibility and use the money to maintain essential services like police, fire, education and healthcare."